ABOUT US 

Corporate Strategy

 

PERFORMANCE 2017

The Company revenue year 2017 mostly contributed from sales crude oil of TAC Linda Sele amounting Rp 28.67 billion or 58.68% of the total company sales revenue, increased 20.22% compared to year 2016 even though the sales volume slightly decreased of 0.72% to 64,730 barrel in 2017. This increase was due to the increasing of average Walio crude oil selling price from USD 37.30 barrel to USD 49.15 per barrel in year 2017.

Sales revenue from granite mining decreased by 52.39% from Rp 42.39 billion in year 2016 to Rp 20.18 billion for the year 2017. Production also decreased 38.20% to 418,794 tonnes compared to year 2016 of 677,683 tonnes as the process of disposal of granite business near to closed.

Our efforts for cost efficient has also resulted a significant reduction on the operation loss. Loss from operation decreased by 82.24% from Rp 16.72 billion year 2016 to Rp 2.97 billion in year 2017. Such loss derived from oil and gas business of Rp 2.36 billion plus loss from discontinued operation Rp 0.61 billion.

Overall, the company recorded a net loss year 2017 of Rp 23.35 billion or decreased by 0.05% compare to year 2016 of Rp 23.36 billion due to the recognition of the finance cost of other receivables from PT Indelberg Oil Indonesia (associate) for Rp 15.01 billion.

GOOD CORPORATE GOVERNANCE

Along with the company strategy for continuing capital investment reduction, cost efficiency, cost reduction and control, the Internal Audit was empowered to ensure that the implementation of the above Company’s strategy and standard operating procedures are translated into day to day operation of TAC Pertamina EP – IBN Oil Holdico Ltd. (TAC Linda Sele) and KSO Pertamina EP - Benakat Barat Petroleum (KSO BBP). The Company closely monitor daily operation activities of its subsidiaries to mitigate any potential risk might arise and affect the operation continuity as well as fast respond to any operational problem.

Understanding the company is exposed to the environmental, health and safety in its operation activities that may directly or indirectly adverse to its employees and properties, community as well as regulatory, the Company strive to enhance its HSE compliance through maintaining routine environment analysis and report, implementing proper HSE procedures in its operation activities, punctual submission of HSE Report to the Government as well as fast respond to any community complaint on any damage or environmental issues. In addition, the Company together with its subsidiaries and associates conducted regular HSE Talk to promote HSE awareness within the internal organization.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) is the most important aspect for maintaining sustainability business of the Company. Our social responsibility covers economic, social and local development which translated into economic empowerment program by involving local people and companies as our subcontractors/suppliers in supporting operation activities, social and education contribution through extended scholarship, school facility improvement, renovation mosque and other villager facility, and others. During the year 2017, the Company has suspended to extend the CSR program, pending the new regulatory were synchronized within and across the government.

The Company has allocated CSR fund and remain commit to extend CSR Program whenever there are no local regulatory barrier.

CHALLENGES AND OPPORTUNITY 2018

Year 2018 would be a challenging year for the Company as our portfolio in Linda Sele Field to be expired by November 2018. Even though TAC Linda Sele considered as a mature field, the remaining resources as well as the extended area adjacent to the field can be maximizing through several efforts of exploitation activities, hence we are quite confidence to have the extension of contract from PT Pertamina EP (PEP) as the eastern area are not being PEP’s priority for development.
It also our challenge to enhance the performance of KSO BBP, amid the uncertainty of international crude oil price, extreme weather as to other related operation barriers for increasing the targeted production level which generate economic value and profitable for the subsidiary, then in turn for the Company benefit.

With all of the Company’s resources to support the Company and subsidiaries business, securing a favorable financing scheme and sources through capital market, strategic alliances are being the main keys for the sustainable of overall group operation, including its subsidiary and associates.

Looking forward, we are optimistic the oil price trends indicating a better figures and lead to a favorable climate for the best company operation and performance. It is also necessity for the Company to pursue other lucrative business opportunities that can be immediate generating cash flow toward the Company through acquisition or strategic alliance or business partnership or collaboration with other oil and gas company and its related business, or even with a non-oil and gas company.

 

 

Headquarters

Gedung Menara Karya 3rd Floor
Jl. HR. Rasuna Said Blok X-5 Kav.1-2
Jakarta – 12950
Tel: (62 21) 57957518   |   Fax: (62 21) 57957418